In his memorandum to departments and autonomous agencies, Villagomez, who is also the administrator of the Retirement Fund, said each department’s injured employees “have no recourse” to the WCC or any private insurer for workers’ compensation benefits.
Each department or agency, he said “is not protected by the limitations of liability afforded by the workers’ compensation law.”
The commission, Villagomez said, has undertaken a thorough review of the laws surrounding self-insurance by the government in response to recent inquiries on the WCC’s quarterly assessments.
The review, he added, revealed “serious deficiencies” in the law. These affect the commission’s ability to make assessments due to lack of each employer’s application for a certificate of self insurance and full compliance with the laws and regulations, he said.
The law does not require the commission to pay claims on behalf of any employer, even the government employers, he added.
Because there is no government employees self-insurance fund, government agencies may obtain private workers compensation insurance or may comply with all the provisions governing self-insurance including the provision of adequate security for claims, he said.
According to Villagomez, if the government employer chooses self-insurance, he or she will need to apply for a certificate of self-insurance and comply with the relevant laws and regulations.
“We have communicated these issues to the Legislature and have submitted proposed legislation to address and remedy the problems. However, unless and until these issues are addressed, government employers will be treated no different than private employers,” Villagomez said.
Public Law 6-33, which established the WCC, states that “every employer shall be liable for and shall secure payment of such compensation.”
Villagomez said with the potential exception of claims made by the commission staff, the WCC is not a proper payer of claims, thus, the administrator is not authorized to pay any claim.
He said the Legislature intended to establish a government employees self-insurance fund and for a portion of the government’s liability to be self-insured.
Unfortunately, he added, the Legislature did not follow through with its plan.
In a meeting a few months ago, Villagomez said the commission voted to recommend legislation, H.B. 17-221, to establish the government employees self-insurance fund and to specify for purposes that all employees of the executive, legislative and judicial branches, together with all autonomous agencies, are deemed employees of the government.
He also urged the department heads to submit their comments in support of the measure which was introduced by Rep. Joseph M. Palacios, R-Saipan.
